Calculate the capital gain on the sale of the asset

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Question - During July 2021, Ms. Anita Holyday sells a capital asset with an adjusted cost base of $100,000, for proceeds of $150,000. She receives $50,000 of this amount in cash, with the remaining balance due at the end of the following year.

Required -

A. Calculate the Capital Gain on the sale of the asset.

B. Complete the table below to calculate the minimum Taxable Capital Gain that Anita will have to include in her income regarding this transaction in the 2020 and 2021 taxation years (round your answer to nearest whole number):

 

2020

2021

Capital Gain

 

 

Prior Year Reserve

 

 

Current Year Reserve

 

 

New Capital Gain

 

 

Taxable Capital Gain

 

 

Reference no: EM133172728

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